Live/Online Class Live Quiz

Household Consumption Expenditure Survey (HCES) 2022-23

A new methodology with some issues

Source: TH

Relevance: GS 2: Governance.

Mains: Most of the unemployment in India is structural in nature. Examine the methodology adopted to compute unemployment in the country and suggest improvements. (2023)

Overview of HCES 2022-23

  • Release of Key Findings: The NSS Office shares findings from the Household Consumption Expenditure Survey (HCES) 2022-23, presenting nationwide average household monthly per capita consumption expenditure (MPCE) for rural and urban areas.
  • State-level Estimates: Detailed estimates for each State and Union Territory (UT) in rural and urban sectors.Household Consumption Expenditure Survey 2022-23: An Analysis - PWOnlyIAS

Changes and Implications

  • Updated Coverage: Reflects recent consumption trends with an expanded item list.
  • Questionnaire Restructure: Split into three sections, enhancing accuracy, particularly for food, consumables, services, and durable goods.
  • Methodological Challenges: Changes in village and urban block stratification may affect sample representation, especially concerning affluent households.

Methodological Issues

  • Questionnaire Splitting Impact: Hinders comparison with past data, necessitating a reconsideration of the approach.
  • Recommendation: Return to a single-visit, traditional methodology for improved comparability.
  • Proposal for Rich Household Frame: Utilize administrative data to identify affluent households for dedicated surveys, ensuring their adequate representation.

Importance and Recommendations

  • Data Gap Bridging: HCES 2022-23 addresses long-standing data deficiencies, aiding poverty estimation and policy formulation.
  • Methodological Improvement: Vital for ensuring data reliability and comparability.
  • Enhanced Representation: Additional modules and focused surveys can improve data quality across different socioeconomic segments.

Conclusion

  • HCES 2022-23 fills crucial gaps, shedding light on consumption patterns.
  • Methodological alterations pose hurdles to data comparability and sample accuracy.
  • Addressing these challenges is pivotal for robust estimates and informed policymaking.

 

Sign Up to Score Faster Higher Better
Popular Courses

Free Resources

Recent Posts

Socialize with us

Scroll to Top

Worried About Civil Services Exam Preparation?

Learn Anytime, Anywhere with ProdEgyIAS App